Capital stress testing requirements for foreign banking organizations with combined U.S. assets of $100 billion or more.

CFR · 2024-01-01 · US · Title 12

(a) (1) (i) The following assets do not qualify as eligible assets: (A) Equity securities; (B) Any assets classified as loss at the preceding examination by a regulatory agency, outside accountant, or the bank's internal loan review staff; (C) Accrued income on assets classified loss, doubtful, substandard or value impaired, at the preceding examination by a regulatory agency, outside accountant, or the bank's internal loan review staff; (D) Any amounts due from the home office, other offices and affiliates, including income accrued but uncollected on such amounts; (E) The balance from time to time of any other asset or asset category disallowed at the preceding examination or by direction of the Board for any other reason until the underlying reasons for the disallowance have been removed; (F) Prepaid expenses and unamortized costs, furniture and fixtures and leasehold improvements; and (G) Any other asset that the Board determines should not qualify as an eligible asset. (ii) The following rules of valuation apply: (A) A marketable debt security is valued at its principal amount or market value, whichever is lower; (B) An asset classified doubtful or substandard at the preceding examination by a regulatory agency, outside accountant, or the bank's internal loan review staff, is valued at 50 percent and 80 percent, respectively; (C) With respect to an asset classified value impaired, the amount representing the allocated transfer risk reserve that would be required for such

official document · source cfr-2024 · id 12:§ 252.158